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Biotech / Medical : FMS - The Dialysis Co.
FMS 23.84-0.3%Dec 31 3:59 PM EST

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To: rrufff who wrote (12)6/19/1998 11:33:00 AM
From: Timothy  Read Replies (1) of 32
 
The word is now that FMS is being very tight with a buck so the quarterly report looks good. This plus the reduction of staff (layoffs) they did might make the stock surge for a short time after they release their quarterly.

Two things stand in the way of any real progress:

1. Their medicare finances are under investigation by the Gov., a situation they inherited from WR Grace. From what I can find out it seems that the Feds are on a bit of a witch hunt. Medicare reimbursment has always had a little voodoo involved.

2. They need to sell off their home care business, but they can't give it away. That seems to be the only anchor in their profit margins. (that's why they keep adding the "core business is profitable" stuff to their press releases) They need to find the right buyer that fits into that business so they can get a fair price.

I think FMS has a bright future. Not an exiting one, but solid.
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